10. CASH AND CASH EQUIVALENTS As at 31 Dec 2024 $’000 As at 31 Dec 2023 $’000 Current assets Cash at bank 3,153 17,094 11. SHORT TERM INVESTMENTS As at 31 Dec 2024 $’000 As at 31 Dec 2023 $’000 Current assets Short-term investments 219,089 211,445 Following the receipt of the first commercial sale milestone payment, the upfront payment for the expansion of the partnership with Acadia Pharmaceuticals for Trofinetide to a worldwide exclusive licence and quarterly royalties, Neuren is holding more funds than are required to meet currently forecast short-term cash commitments. As a result, the Company has classified short-term deposits as short-term investments. 12. TRADE AND OTHER RECEIVABLES As at 31 Dec 2024 $’000 As at 31 Dec 2023 $’000 Current assets Trade receivables 155,154 – Other receivables 1,167 80 Interest receivables 1,249 1,532 Prepayments 397 4,205 157,967 5,817 Trade receivables includes amounts receivable under the license agreement with Neuren’s partner, Acadia Pharmaceuticals. The amounts outstanding from Acadia at 31 December 2024 were related to the revenue recognised for the sales milestone payment and the consideration in relation to the priority review voucher. The consideration for the priority review voucher was received in early February 2025, and the sales milestone payment is expected to be received in Q1 2025. The Group applies the simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on an individual basis due to the limited number of receivables. The expected loss rates are based on the payment profile of the individual receivable including historical experience, external indicators and forward-looking information to calculate the expected credit losses. Trade receivables are written off (i.e. de-recognised) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the Group on alternative payment arrangements amongst others are considered indicators of no reasonable expectation of recovery. No credit losses have been determined for the current year (2023: nil) and all outstanding invoices are within payment terms at year end. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2024 38
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